Nortel Networks has refuted claims that the 300 jobs at its Galway plant are under threat.

"There has been no statement from our CEO Mike Zafirovski since the one he made two weeks ago. We have reached an agreement with Nokia for the sale of our wireless infrastructure but that is all.

"It was decided to find buyers for each facet of our business but discussions are ongoing with other parties about this. Nothing specific has emerged for Galway," she said.

A statement released by Nortel Networks Corporation on Friday 19 June said: "Nortel Networks Inc have entered into a 'stalking horse' asset sale agreement with Nokia Siemens Networks (NSN) for the sale of substantially all of its CDMA business and LTE Access assets for US$650 million."

The statement continued: "The agreement with NSN specifies that at least 2,500 employees would have the opportunity to continue with NSN. This represents a significant portion of the employees associated with the assets being sold."

In relation to all sections of their business being sold, the Nortel statement said: "The company will assess other restructuring alternatives for these businesses in the event it is unable to maximize value through sales."

It was also confirmed that Nortel will apply to de-list its common shares and the NNL preferred shares from trading on the Toronto Stock Exchange (TSX). Trading in such shares on the TSX is expected to be suspended pending its decision on the delisting application.

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